Calif. Pension Plan Sacks Consultant

October 9, 2002 (PLANSPONSOR.com) - The fallout from
the Advanced Investment Management storm of controversy this
summer continues with the firing of an investment consultant
who helped pick Advanced for a West Coast pension
plan.

EnnisKnupp and Associates revealed Wednesday that it had
been terminated by the San Bernardino County Employees’
Retirement Association (SBCERA).

EnnisKnupp had helped the SBCERA hook up with the
Pittsburgh, Pennsylvania-based Advanced who the pension
fund later accused of losing $55 million in its domestic
equity trades for the $3.2-billion pension fund.

“We are disappointed by SBCERA’s decision. We have been
instrumental in helping SBCERA make substantial cost
savings and significant improvements to their investment
program during our tenure with them,” EnnisKnupp said in a
press statement. “We are also satisfied that our actions in
connection with SBCERA’s hiring and monitoring of the
subject investment manager met the highest standards of due
diligence. In this respect, we were instrumental in
detecting the improper trading, and our advice on prompt
remediation helped minimize the loss.”

EnnisKnupp spokesman Brennan O’Donnell told
PLANSPONSOR.com Wednesday that there was no one available
to elaborate further on the statement.

Last month, SBCERA filed a federal court lawsuit in
California against the now-defunct Advanced which seeks $55
million in damages, plus any profits Advanced made through
its trades for the fund. The suit charges that Advanced
bought and sold leveraged futures and option contracts in
violation of SBCERA’s investment guidelines.

As many as four other Advanced clients also fired the
firm, likewise complaining about its trading practices:

the $1.3-billion Minneapolis Employees Retirement
Fund, which accused Advanced of losing $27
million